Daijiworld Media Network – New Delhi
New Delhi, Jan 16: Deloitte India has called on the government to leverage the FY27 Union Budget to strengthen India’s trade resilience by expanding export credit and concessional financing for micro, small and medium enterprises (MSMEs), while also earmarking dedicated funds for exploration and overseas access to critical minerals.
In its Budget expectations released on Friday, Deloitte highlighted the pivotal role played by MSMEs in the Indian economy, noting that the sector contributes around 46 per cent of the country’s exports and is the second-largest employer after agriculture. The firm said easing financial constraints and compliance burdens would help MSMEs withstand global volatility, sustain production and remain competitive in international markets.
“Strengthening MSMEs will safeguard jobs and drive inclusive economic growth, boost rural incomes and support India’s ambition to emerge as a global manufacturing hub,” Deloitte said, as quoted by PTI. It also pitched for simplified digital processes to reduce compliance pressures and comprehensive skill and training programmes to improve last-mile competitiveness.
The consultancy further recommended targeted export incentives or enhanced duty drawback support for tariff-sensitive sectors such as ready-made garments, gems and jewellery, and leather, which are facing increasing pressure amid evolving global trade norms.
Deloitte economist Rumki Majumdar warned that rising global protectionism and ad-hoc measures — including tariff hikes, changes in rules of origin and non-tariff barriers — are adding uncertainty for Indian exporters. While the direct impact of global trade frictions on India’s GDP growth may be limited to 40–80 basis points, the spillover effects on MSMEs and employment could be substantial, she cautioned.
“MSMEs contribute 30.1 per cent to GDP, account for 45.79 per cent of India’s exports and employ nearly 290 million people. Disruptions in export markets or tighter trade rules pose serious risks to jobs and income stability,” Majumdar said.
On resource security, Deloitte proposed the creation of a dedicated critical minerals fund to finance overseas acquisitions and technology partnerships, along with increased allocations for domestic exploration, extraction and processing of minerals such as lithium, cobalt and rare earth magnets. It also stressed the need for deeper global collaboration with regions like Africa, Australia and Latin America to secure upstream access and promote joint research and development in mineral processing and recycling.
Additionally, the firm advocated incentivising investments in renewable energy, green hydrogen and grid-scale energy storage, arguing that such measures would reduce external vulnerabilities and support India’s long-term transition towards clean and sustainable energy.